Oil & gas news

SOCAR's OPERATING WELL STOCK UP

SOCAR's operating well stock amounted to 6889, 1328 offshore and 4260 onshore wells, as of February 1, 2002, the company said Thursday. This is 11 wells over January 1 of this year.

64 new wells were put into commissioning and 53 decommissioned in January. The number of offshore wells remained unchanged, while onshore they rose by 11 to 4260.

SOCAR COMES SHORT OF 13M CUBIC METERS OF GAS

SOCAR transferred 155600000 cubic meters of gas to AzeriGas joint stock company in January this year instead of 169000000 cubic meters. The shortage followed AIOC failing to transfer 7000000 cubic meters of gas on time.

DRILLING ON KURSANGHI-GARABAGHLI UNCLEAR

The drilling of the third exploration well on the Kursanghi-Garabaghli field has been suspended and well logging operations started there. Now, the fate of the well depends on the outcomes of the well logging, SOCAR said Friday.

The reason is the hard reservoir structure in the site that makes it risky to drill. Though the already bored 4572 meters against the estimated depth of 5300 meters show the presence of oil, the drilling is likely to be abandoned.

400,000 TONS OF CRUDE DISPATCHED

396,463 metric tons of crude was shipped in the Russian port of Novorossiysk to international markets in January, a source from SOCAR said Wednesday.

In this period, 17,677 metric tons of automobile gasoline, 31,612 metric tons of diesel fuel, 6,699 tons of aviation kerosene, and 1,373 tons of cocks was dispatched from Baku.

A total of 57,363 metric tons of oil products was exported.

LUKOIL NETS $1937MLN IN 9 MONTHS OF 2001

The LUKoil Azerbaijan has released the company's consolidated financial report for 9 months of 2001 compiled in accordance with the US GAAP principles.

The reports reads that the third quarter of last year was characteristic of the worsening situation on the international markets of oil and oil products. Brent oil prices dwindled 6.5% as compared to the same period of 2000. Oil prices shrank by 10% on the average. The decrease in oil made up 5% compared to the second quarter of 2001 and oil products constituted 10%.

The inflation had place in Russian economy. The high demand for oil and oil products gave way to enhanced competitiveness and non-profitable supplies to the domestic market. Export duties for oil and taxes for production of recoverable deposits soared. Nevertheless, the company managed to maintain the favorable economic and financial benchmarks. LUKoil's net income in 9 months of 2001 amounted to $1937 million ($2.47 per a share), with proceeds being $10641. The assets surged spiraled 15% as of September 30, 2001 to December 31, 2000 to $19699 million. The joint stock capital reported $12194 million (a 16% increase). Earnings before profit taxes, percentage payments and exhaustion constituted $3411.

DRILLING PLAN FAILS IN JANUARY

The January drilling plan was fulfilled only by 77.9% after 7024 meters were bored instead of the planned 9020 meters. The backlog was in evidence offshore, where the plan was fulfilled by 50.2%. The over-fulfillment of the onshore drilling projection by 116.6% did little to remedy the situation.

Also failing in January was the exploratory and operational drilling plan, as 255 (72.9%) and 6769 and meters were drilled against the projection of 350 and 8670 meters.

WELL CONSTRUCTION PLAN OVER-FULFILLED

5 wells, or a well over the plan, were constructed in January this year. All of them are operational, including 4 offshore and 1 onshore. Joint ventures and operation companies didn't construct any wells last month, as it wasn't planned.